Markets & Finance

Jefferies Ups American Power Conversion to 'Buy

Jefferies upgraded American Power Conversion (APCC) to buy from hold.

The maker of power protection solutions posted 28 cents, vs. 21 cents third-quarter earnings per share on a 17% revenue rise. Analyst Mas Siddiqui says the upgrade reflects strong third-quarter results and a promising outlook for the fourth quarter and 2004. He says outperformance is driven by growth in all geographic regions and product lines, including continued strength in demand for new products such as InfraStruXure products in its Large Systems business and core UPS systems.

Siddiqui notes the August blackout in the U.S. may have had some positive impact on third-quarter results, but he doesn't think this is material, as demand was robust before the power outage occurred. Siddiqui raised the 80 cents 2003 earnings per share estimate to 85 cents, and upped the 90 cents 2004 estimate to $1.00. He has a $23 target.

The Good Business Issue
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